"Nvidia ( NASDAQ:NVDA) faces some intense competition in the AI chip scene, and that's likely part of the reason why the shares have been flatlining since August. Of course, all it takes is one incredible, breakout quarterly earnings performance (a side of encouraging commentary from CEO Jensen Huang couldn't hurt as well!) for Nvidia stock to start moving higher again. Undoubtedly, shares have consolidated before, and they've even encountered the odd painful bear market. But it's the buyers of weakness who were rewarded, even though it felt unpleasant to get in at the time."
"What's more, the Magnificent Seven companies have been making big strides with their in-house silicon. Microsoft's ( NASDAQ:MSFT) latest Maia 200 AI inference chip is quite impressive, with reportedly big gains in performance over the third-generation Amazon ( NASDAQ:AMZN) Trainium chip, as well as Google's (whose parent company is Alphabet ( NASDAQ:GOOGL)) seventh-generation TPUs (Tensor Processing Units). Undoubtedly, the impressive results of the latest Maia chip seem to be a bigger rival to its rivals in the public cloud than the likes of the GPU titans."
Nvidia shares have been flat since August amid intensifying competition in AI chips, and a single strong quarterly report could reignite the stock. Nvidia maintains a leading position in GPUs, which remain essential for training frontier AI models. Rising custom silicon and ASICs aimed at inference could chip away at Nvidia's share of the broader chip market. Major tech firms—the Magnificent Seven—are developing powerful in-house inference chips, with Microsoft’s Maia 200 showing notable gains over Amazon’s Trainium and Google’s seventh-generation TPUs. Nvidia is pursuing inference deals and partnerships to prepare for accelerating competition.
Read at 24/7 Wall St.
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